04:27 PM EDT, 06/05/2026 (MT Newswires) -- Hallador Energy ( HNRG ) said Friday its Hallador Power unit was selected by the US Department of Energy to start award negotiations for up to $27.2 million in potential federal funding to modernize its generating station in Merom, Indiana.

The total project cost is expected to be $56.9 million, according to a statement.

Through the planned project, Hallador Power will modernize Merom units 1 and 2 water handling systems to further decrease its environmental impact, the company said.

The company said it can't guarantee that any funding will be awarded or received via the negotiations.